Inside Singapore’s post-Covid investment boom

The instinct to prepare for every eventuality is perhaps not surprising in the wake of Covid-19, often described as a global near-death experience. Withers’ offices around the world report that the pandemic has prompted people to consider wills and lifetime power of attorney sooner rather than later. As an example, Jocelyn Tsao, who leads the firm’s family team in Hong Kong, points to a rise in enquiries about deeds of guardianship since the pandemic. “People are much more alive to the possibility that death or sickness can happen at any time,” she says. “Signing a deed of guardianship gives them peace of mind that if they are locked down for a period, there will be someone to take care of their children.”

Thinking of the future 

Equally, building a presence in Singapore is a smart move for those who wish to take care of their offspring in the event of their death. Trusts are a long-established wealth-holding tool in the state, and there is currently no inheritance tax. This makes it particularly appealing for global families that are looking for the best way to transfer wealth to the next generation. 

“A lot of jurisdictions around the world have quite high taxation on inheritance, so Singapore is often seen as a planning opportunity that could potentially help a family to reduce their tax bill if a loved one should pass on,” Yong Sheng says. 

Perhaps Singapore’s biggest selling point is its predictability. The current leader has been in place for almost 20 years, and is expected to hand power to a chosen successor, remaining in the background to offer guidance. “When the Prime Minister retires, he is expected to stay on as a senior minister to watch over his successor, just as his predecessors did. So you always have political and policy continuity,” says Daniel Yong.